2011 (7) TMI 429 - AT - Central Excise

Classification - As regards wind shield wiper motor, it consists of a motor fitted with a gear assembly and it is meant to be a part / component of the windscreen wiper - As regards blower motor, it has been built to perform the function of air circulation of taking air from inside or outside the car which clearly brings out that the motor is built up with particular features which link up the motor with the characteristics of performing the function of air circulation - Both are therefore not simple prime movers in order to justify classification under Chapter Heading 85.01 - On an application of Note 2(b) of Section XVI, they will fall for classification adopted by the department namely Chapter Heading 85.12 as parts of windscreen wiper and under Chapter sub-heading 8543.90 as goods not elsewhere specified respectively - Decided against the assessee.

Summary

Issues:
1. Extension of cum duty benefit challenge by Revenue
2. Classification challenge by assessees regarding "Wind Shield Wiper Motor" and "Blower Motor"

Extension of Cum Duty Benefit Challenge:
The judgment addresses the Revenue's appeal challenging the extension of cum duty benefit in light of a Larger Bench decision in Sri Chakra Tyres. The Revenue's sole ground is the department's review petition against the apex court's decision in Collector Vs. Srichakra Tyres, which was dismissed by the apex court. The tribunal finds no merit in the Revenue's objection and upholds the impugned order regarding the re-determination of value based on the Srichakra Tyres decision. This issue is resolved in favor of the assessees.

Classification Challenge - Wind Shield Wiper Motor and Blower Motor:
Regarding the classification challenge raised by the assessees, the tribunal analyzes the nature of the Wind Shield Wiper Motor and the Blower Motor. The Wind Shield Wiper Motor, comprising a motor with a gear assembly meant to be a part of the windscreen wiper, and the Blower Motor, designed for air circulation inside or outside the car, are not considered simple prime movers justifying classification under Chapter Heading 85.01. Applying Note 2(b) of Section XVI, the tribunal determines that both motors fall under Chapter Heading 85.12 as parts of a windscreen wiper and under Chapter sub-heading 8543.90 as goods not elsewhere specified, respectively. The classification adopted by the authorities below is upheld, and the cross appeal by the assessees is dismissed. Thus, this issue is resolved against the assessees.

In conclusion, the judgment dismisses both the Revenue's appeal challenging the cum duty benefit extension and the assessees' cross appeal regarding the classification of the Wind Shield Wiper Motor and Blower Motor. The decision provides detailed reasoning for upholding the impugned order based on the relevant legal provisions and precedents cited during the proceedings.